New Restaurants!

Last year the local business improvement district did a survey about what people really think about Union Square. You can check out some results here.

We’re sad—really sad—to announce that Niall Cooney, our stellar super of two and a half years is moving on to another position here in New York. We’ll miss him and thank him for his very hard work, his good humor, and his consistent commitment to doing things right. We’ve been very lucky to have him on our team.

The Board has already begun the process of recruiting a new super to take Niall’s place. In the meantime, the building will be covered by Jonathan Alfonzo, who will be available on-site Monday-Friday from 9-5 and on call 24/7. Please make note of his phone number and e-mail should you need it: (347)-286-2088 j_alfonzo81@yahoo.com.

Also note the numbers of our managing agent Yves Martinez and his assistant Eric Sunberg.
Yves: 212-986-0001 ext.173
Eric: 212-986-0001 ext.133

Well, that was quick. Our downstairs neighbor Spiderbands went defunct quickly.

It looks like shuttered Indian restaurant Babu Ji may be rising from its wage theft lawsuit ashes into the old All’onda space at 22 East 13th Street. A neighbor happened upon the space at an opportune moment, when a garbage bag hanging over a brand-new sign at the address fell down, revealing the words “Babu Ji” for all to see. It’s an unexpected changeover for the space — up until very recently, Red Farm restaurateur Ed Schoenfeld was planning to take the space for a new restaurant called The Mess. The restaurant with chef Zod Arifai was completely built out and had even hired staff and hosted friends and family in February when all work came to a halt in March. Schoenfeld previously told Eater the hold-up was initially a result of issues with the Community Board, who recommended a denial of the space’s liquor license. Schoenfeld did not immediately respond to inquiries, and Babu Ji owners Jennifer and Jessi Singh declined to comment.

Here, in its entirety, is a recent New York Times article about maintenance increases and transfer fees and how co-ops are currently suffering.

 

Co-op Fees Go Through the Roof

CO-OPS across the city have raised their maintenance charges by as much as 15 percent in recent months, and one of the main causes is rising property taxes.

 

Board members and building managers say that while maintenance increases averaged only about 5 percent last year, many co-op buildings are now dealing with double-digit increases.

 

“Operating costs have gone up, but property taxes have skyrocketed,” said John Janangelo, the president of Bellmarc Property Management, which manages about 50 apartment buildings in Manhattan. He said that taxes for some of his buildings had risen by as much as 35 percent in 2009. “It comes at the worst time,” he added, “because financially everyone is suffering. You don’t want to pass through these huge increases because people can’t afford them, but you have no choice.”

 

Property taxes went up at the start of the year when the city eliminated a 7 percent homeowner tax cut initiated in 2007, when the city was on better financial footing. But there is another reason for the increase. Buildings whose property values soared in recent years are experiencing even bigger tax increases because the assessed values of their buildings have gone up.

 

Co-op boards routinely challenge their assessments and if the city’s Tax Commission does not reduce the assessments, boards can appeal in court. Because the process is lengthy, a building that has received a series of big assessment increases may not get relief for years.

 

“Assessments have gone up based on last year’s market,” said David Kuperberg, the president of Cooper Square Realty, which manages about 200 co-ops and condominiums. “And that’s like kicking homeowners while they’re down,” he added, noting that assessments often take a while to catch up to the market.

 

Marty Hoffman, the board treasurer of a 106-unit co-op on West 89th Street, said that the assessed valuation of the building had gone up every year in the last five years for a total increase of 107 percent. The property tax bill has gone up 55 percent, from $369,000 in 2004 to $574,000 in 2009. Taxes this year alone went up by $83,000, or roughly $783 more annually for each tenant shareholder.

 

Because each year’s higher assessment is phased in over a five-year period, Mr. Hoffman’s building faces at least four more years of hefty assessment increases as the increases that were issued when the market was booming continue to kick in. Mr. Hoffman said that even though the tentative assessment increase for 2009-10 was only 1 percent, the building may have another tax increase of about $83,000 next year because of the phase-in of previous assessment increases. “Aside from the run-up in oil prices,” he said, “nothing has gone up as fast as real estate taxes.”

 

Mr. Hoffman said cheaper fuel was the only reason his building had been able to limit its annual maintenance fee increase to 7.2 percent. “If oil prices hadn’t dropped, we would have been faced with a 15 percent increase.”

 

Some operating costs have risen, however. Richard Montanye, a partner with the accounting firm of Marin & Montanye in Uniondale on Long Island, which works with hundreds of buildings in the city, said that water and sewerage charges went up 14.5 percent last year. “Housing costs in the city in the past four to five years have far outpaced inflation,” he said.

 

At the same time, some revenue sources have been drying up for many buildings. Those with commercial tenants, especially retail outlets, have been hit hard by the recession, with many tenants asking for rent reductions because their sales volume has dropped off significantly.

“Retail tenants are all hurting,” said Richard Siegler, a lawyer who represents about 150 co-ops, “and they’re all coming to boards and asking for relief. If the economy improves, then a lot of this will go by the by, but if not, then boards will have to contemplate losing tenants, even though they’d rather not have a vacancy.”

 

Buildings that in a stronger market relied on income from flip taxes — a sort of transfer fee for each sales transaction — may also struggle now that sales volume throughout the city has been reduced to a trickle.

 

Robert Berliner’s 277-unit building on Sutton Place has a 2 percent flip tax for outside buyers, which he said “was a pretty significant source of revenue in 2006 and 2007.” The building had used that income to meet operating costs, but because there are now so few apartments changing hands in the building, the board has shifted its flip tax revenue into its reserve fund. “We’re trying to be more realistic and more conservative in dealing with our budget,” he said.

 

Mr. Berliner said that because real estate taxes are so high for the building, the board may consider raising the flip tax to 3 percent. Property taxes were just under $3 million last year and represented the single largest expense in the building’s $7 million budget.

 

Mr. Berliner, who is the co-op’s board treasurer, said that the city raised the building’s assessment by 25 percent in 2008, but the building challenged the increase and got it reduced to 10 percent.

“But when you consider the state of the economy and what’s happening in real estate values,” he said, “how the city could have come up with any increase in assessed valuation is beyond me.”

If you’re curious about the plans for the New School’s new construction on our block, there will be a public presentation on February 17. Here’s how the Greenwich Village Society for Historic Presentation is billing it:

On Wednesday, February 17 at 6:30 pm The New School (TNS) will make a public presentation of its current plans for a new development at 65 Fifth Avenue, between 13th and 14th Streets. Having originally proposed a 300-350 ft. tall building rising straight up over the entire site which would have required several zoning variances, TNS is now proposing a much smaller, 16-story, 189 ft. tall (plus mechanicals) building which will set back above the 6th floor and which conforms to the existing zoning for the site. The presentation will be similar to that which was made to GVSHP, other community groups, and elected officials in December. The plans are not yet finalized at this time, but do contain significant details about TNS’ thinking and progress on the design.

The fact that the mass and height of the proposed building has been reduced significantly from prior proposals in a very positive development. However, GVSHP does have concerns about the metal and glass design currently being contemplated for the facade of the building. The public presentation to Community Board #2’s Institutions Committee will be an opportunity to learn more about TNS’ plans for the site, ask questions, and provide feedback about the project.

Attend the public presentation on Wednesday, February 17th at 6:30 pm at the St. Vincent’s Hospital cafeteria on 12th Street.